IRU IT risk management tools and their use by the ECO Member States Karachi, 18 August 2014 Tatiana Rey-Bellet, TIR-EPD Project Manager

2 Computerisation of TIR System by IRU Customs authorities TIR associations TIR carnet holders

3 Real-Time SafeTIR: objectives Automation of SafeTIR procedures: TIR Carnet status control Instant transmission of SafeTIR data SafeTIR data reconciliation Simplification and higher safety of customs procedures for the facilitation of international trade Starting from 1990s: geopolitical changes with high increase in trade volumes and in TIR transport risk increase for TIR guarantee chain. October 1995: Administrative Committee for the TIR Convention adopted a Recommendation which set out an electronic control system for TIR Carnets. August 2006: this control system – SafeTIR, was included in the TIR Convention as Annex 10.

4 RTS – geographic coverage E S T O N I A L A T V I A L I T H U A N I A B E L A R U S P O L A N D S L O V A K I A U K R A I N E M O L D O V A R O M A N I A H U N G A R Y B U L G A R I A T U R K E Y G R E E C E A Z E R B A I J A N G E O R G I A ARMENIA T U R K M E N I S T A N U Z B E K I S T A N T A J I K I S T A N K I R G I S T A N K A Z A K H S T A N R U S S I A N F E D E R A T I O N F I N L A N D Russian Fed. A F G H A N I S T A N I R A N S Y R I A N A R A B P E O P L E ‘ S R E P U B L I C O F C H I N A CYPRUS A Z E R B. S W E D E N N O R W A Y D E N M A R K G E R M A N Y NETHERLANDS B E L G I U M U N I T E D I R E L A N D S P A I N PORTUGAL I T A L Y S W I T Z E R L A N D A U S T R I A K I N G D O M L UX. SLOVENIA C R O A T I A BOSNIA- HERZEGOVINA ALBANIA MKD F R A N C E M O R O C C O T U N I S I A C Z E C H R E P U B L I C R E P U B L I C L E B A N O N I S R A E L J O R D A N SERBIA 18 RTS countries 1.Azerbaijan 2.Belgium 3.Bosnia and Herzegovina 4.Bulgaria 5.Georgia 6.Kyrgyzstan 7.Kazakhstan 8.Latvia 9.Macedonia 10.Moldova 11.Morocco 12.Russia 13.Serbia 14.Turkey 15.Ukraine 16.Uzbekistan 17.Finland 18.France In implementation: Belarus Iran Next priorities: Turkmenistan Tajikistan 18 RTS countries 1.Azerbaijan 2.Belgium 3.Bosnia and Herzegovina 4.Bulgaria 5.Georgia 6.Kyrgyzstan 7.Kazakhstan 8.Latvia 9.Macedonia 10.Moldova 11.Morocco 12.Russia 13.Serbia 14.Turkey 15.Ukraine 16.Uzbekistan 17.Finland 18.France In implementation: Belarus Iran Next priorities: Turkmenistan Tajikistan

5 SafeTIR: global figures % of SafeTIR data were transmitted within 24 hours Average data transmission period – 4.4 days % of SafeTIR data were transmitted within 24 hours Average data transmission period – 1.4 days % of SafeTIR data were transmitted within 24 hours Average data transmission period – 1.6 days ECO Global for 58 countries 54% 8.7 days 77% 2.1 days Annex 10 to TIR Convention: 100% of SafeTIR data must be sent within 24 hours

6 RTS in ECO countries Safe TIR 6.6 days 0 days 4.3 days 0.3 days 2.4 days days 1 day 53 days 0.5 days Negotiation stage: Tajikistan Turkmenistan Negotiation stage: Tajikistan Turkmenistan RTS countries

7 Reconciliation Procedure A request for reconciliation is generated after: Claim or suspicion of fraud and irregularities in the use of a TIR Carnet SafeTIR data is not accepted by IRU database Discrepancy between the counterfoil and the SafeTIR data Lack of any SafeTIR data The reconciliation procedure is used for: Confirmation, correction or completion of the SafeTIR information Annex 10 requirement

8 Implications of SafeTIR for the TIR Holder ≠ Reconciliation Procedure

9 RTS Reconciliation automation - part of RTS module IRU database Customs database Customs automatically daily retrieve list of reconciliation requests from IRU database Customs send replies to IRU for requests of type: -Missing (no data in IRU, but TIR Carnet is terminated) -Customs queries (customs transmitted data, but mismatch with data in TIR Carnet) Customs send replies to IRU for requests of type: -Missing (no data in IRU, but TIR Carnet is terminated) -Customs queries (customs transmitted data, but mismatch with data in TIR Carnet) Benefits of SafeTIR data reconciliation automation module: Improve the quality and completeness of SafeTIR data No need of paper exchange Higher reply efficiency Benefits of SafeTIR data reconciliation automation module: Improve the quality and completeness of SafeTIR data No need of paper exchange Higher reply efficiency

10 SafeTIR System: Real Time Real Time objective : Transmission: 100% in 24 hours Reconciliation: 100% of response in 24 hours Efficient risk detection

11 IRU TIR-EPD - a tool for submitting advance information on goods Mandatory submission of electronic advance information in European Union since 2009 Mandatory submission of electronic advance information in the Customs Union (Belarus/Russia/Kazakhstan) since 2012 Mandatory submission of electronic information in Ukraine since 2013 Submission of advance information in countries, where it is not mandatory, facilitates and secures border crossing TIR- EPD satisfies the requirements of all Customs Authorities, connected to TIR-EPD Mandatory submission of electronic advance information in Iran (Bazargan) since 2014

12 IRU TIR-EPD: Concept Authorised holder sends preliminary information on goods to customs of all countries of his itinerary via IRU TIR-EPD free-of- charge IRU ensures handling and transmission of this information from Holders to customs and from customs to Holders Customs authorities receive information on goods for advance risk analysis and send confirmation to holder.

13 TIR-EPD vs TIR Carnet TIR-EPD = TIR Carnet + additional information (in compliance with all national requirements) Data received by customs: -HS codes -Goods description -Weight -Package type and quantity -Itinerary -Vehicle details -Driver’s details -Cost of goods Etc.

14 TIR-EPD – advantages for Customs No need of manual data entry Automatic validity check against IRU database Only authorised TIR Holders can submit information on only valid TIR Carnets Identical information is sent to all countries Possibility to take into account all customs requirements Advance declaration Advance risk analysis in line with WCO SAFE Framework of Standards

15 TIR-EPD – advantages for transport operators Free of charge – no need of brokers’ services Confidentiality – no access to company’s information by a 3 rd party Only with TIR-EPD: advance information is sent in one click to all countries of itinerary Only with TIR-EPD: user interface in national languages Accessible via Internet from any place Faster and simpler customs procedures at the border Saving time and money Higher competitiveness for a company

16 New version of IRU TIR-EPD: from 15 April

17 TIR-EPD: geographic scope In final implementation stage: Iran Greece Italy Kyrgyzstan SERBIA 27 TIR-EPD countries present: -- 96% of all issued TIR Carnets -- 91% of all TIR terminations

18 TIR-EPD in ECO countries TIR- EPD Negotiation stage: Tajikistan Turkmenistan Negotiation stage: Tajikistan Turkmenistan TIR-EPD countries

19  Pakistan – Afghanistan – Iran – Turkey = 4 TIR-EPDs  Reduces time  Saves money  Reduces corruption TIR-EPD: potential for Pakistani Holders

20 TIR-EPD growth Подача в неделю: > 17,000 Средний месячный рост: 9% 1/5 of all TIR-EPDs was sent by transport operators from ECO in 2014 (with Turkish and Iranian Holders leading)

21 TIR-EPD as basis for compete computerisation of TIR procedures

22 Customs of entry IRU TIR Holder Customs system Customs of destination TIR Holder sens advance information to customs (EPD015) Customs acknowledges data receipt (EPD928) Customs allocated MRN number (EPD028) Example of TIR-EPD data exchange Risk analysis and control decision!

23 Customs of entry IRU Customs system Customs of destination Electronic data are available at the customs of destination TIR Holder presents the documents to the customs officer at destination Customs checks validity of TIR Carnet (through RTS) Customs transmit data on TIR operation termination to IRU (through RTS) Customs transmits data on discharge of TIR operation to IRU (EPD045) Example of TIR-EPD data exchange

24 Implementation of TIR-EPD Green Lanes without Green lanes with Green lanes TIR-EPD Green lanes Enhanced use of advance cargo information and risk management Selectivity of customs controls (reduced controls for reliable transports) Better transit capacity TIR-EPD Green lanes Enhanced use of advance cargo information and risk management Selectivity of customs controls (reduced controls for reliable transports) Better transit capacity

25 TIR EPD Green Lane in Kapıkule, Turkey From 1 November 2012 Data keying decreased from 5-6 min to 2-3 min: ~50% time saved Implementation cost: EUR 1000

26 TIR-EPD Green Lanes in 6 easy steps

27 Transition to international harmonised good practices, which imply: Advance risk assessment Green Lanes with TIR-EPD and other selected criteria, resulting in effective organisation of transit flow Single Window System First priority - BCP with bottlenecks: Torkham (also open for TIR from Afghan side) Chaman (Spin Buldak (Kandahar) from Afghan side) Positive impact: Better risk management and enhanced safety and security Enhanced transit capacity Green Lanes with TIR-EPD: scope for Pakistan

28 Trailer is loaded in a RORO ship without truck, ship arrives at a port of a country of entry, which has already received the advance information Customs of the country of entry receives the information on goods + details of the ship (name, date and time of departure from the previous port) - advance risk management - faster and more secure procedures TIR-EPD: scope for RORO transport